Aspire Mining Gains Government Backing for Critical Infrastructure to Support Ovoot Project

Aspire Mining (ASX: AKM) has secured Cabinet backing in Mongolia for the Murun-Uliastai Highway to proceed under a Build-Operate-Transfer public-private partnership (PPP).

The project overlaps with Aspire’s proposed coal haul road for its Ovoot coking coal project, aligning government infrastructure investment with the company’s development plans.

Management says the endorsement reduces capital risk, strengthens Ovoot’s funding flexibility, and anchors a pathway for broader regional benefits.

Government Approval Delivers Strategic Certainty

The Cabinet resolved that the successful bidder will build, operate and maintain the 213-kilometre highway for 23 years, recovering costs through tolls levied on road users including coal haulage trucks.

For Aspire, this alignment between national priorities and corporate requirements ensures the Ovoot project can proceed without it having to bear the full burden of road construction costs, thereby reducing the potential need for dilutive capital raisings.

By embedding Ovoot’s infrastructure into a government-backed PPP, Aspire benefits from state support while the region gains a multi-user asset that extends beyond coal transport.

The government’s recognition of the project as a national priority also signals to investors that Mongolia is committed to creating a supportive environment for private capital in infrastructure.

This endorsement places Aspire in a stronger position to attract financing partners who value policy certainty and public alignment.

Tender Aligns with Construction Timetable

The Ministry of Economy and Development will organise the tender, which it expects to take around six months.

That timeframe allows it to award the contract in time for the 2026 construction season, synchronising with Aspire’s project schedules.

The clarity of a defined government-led tender path allows Aspire to update its project development plans with realistic assumptions about timing and responsibility.

This revised timeline also provides an opportunity to strengthen partnerships and ensure all financial, legal and technical frameworks are in place.

Aspire Establishes Strong Position to Bid

As the company that submitted the original PPP proposal and worked with the government’s PPP Centre under the Ministry of Economy and Development to evaluate the project, Aspire is not approaching this tender as an outsider.

The company has already completed and secured approvals for the Feasibility Study, Detailed Design and Environmental Impact Assessment, demonstrating that the project can support safe coal haulage alongside community use.

Aspire has also undertaken extensive consultations across nine districts, presenting plans at official khural meetings to ensure local concerns were addressed.

Traffic forecasts to cater for Ovoot production are consistent with Mongolian requirements for public road use, and also support toll revenue sufficient to cover construction and maintenance, giving the project strong economic underpinnings and reducing risks for financing partners.

Financing and Partnerships Advance

Aspire has moved early to secure delivery capability, engaging major international contractors with proven experience in large-scale infrastructure to ensure technical capacity and open avenues for financing through established global networks.

To structure the funding, Aspire has appointed an international investment bank as adviser.

The bank will establish a Special Purpose Vehicle that can raise capital specifically for the highway, an approach that protects Aspire’s balance sheet while still giving it a leading role in delivery.

On the legal side, international law firm Mayer Brown is advising on PPP structuring, while Batbayar & Partners provide local expertise in Mongolian legislation.

This dual approach gives Aspire a comprehensive framework that covers both global best practice and local compliance, improving its bid competitiveness.

Management Welcomes Milestone

Chief executive officer Sam Bowles described the Cabinet’s decision as “a major milestone” for both Aspire and Mongolia.

“With approvals, feasibility studies and community consultation complete, we are ready to support delivery of this critical infrastructure, which will benefit both local communities and Aspire’s Ovoot Project,” Mr Bowles said.

For Aspire, the milestone is a signal that Ovoot’s future is integrated into Mongolia’s national development strategy.

By sharing the burden of road construction through a government-backed PPP, Aspire can conserve capital for mine development while ensuring that its transport corridor becomes a multi-purpose asset.

For Mongolia, the endorsement affirms a commitment to regional development, improved connectivity, and the safe, sustainable delivery of resources to export markets.